Seven states have seen their share of the divisible tax pool shrink, while 21 have gained under the 15th Finance Commission’s 2021–26 award compared with the previous allocation, finance ministry data showed. Karnataka faced one of the sharpest cuts, with its share dropping from 4.713% in the 14th Finance Commission (2015-20) to 3.647%.
The divisible pool is that portion of gross tax revenue that is distributed between the Centre and the states. The divisible pool consists of all taxes, except surcharges and cess levied for specific purpose, net of collection charges.
Kerala’s allocation fell from 2.5% to 1.925%, and Andhra Pradesh’s from 4.305% to 4.047%. Assam, Odisha, Telangana, and the country’s most populous state Uttar Pradesh also saw reductions. However, Uttar Pradesh’s dip, from 17.959% to 17.939%, was marginal.
In contrast, 21 states gained. Bihar’s share rose from 9.665% to 10.058%, Maharashtra’s from 5.521% to 6.317%, Rajasthan’s from 5.495% to 6.026%, and West Bengal’s from 7.324% to 7.523%.
Smaller states such as Arunachal Pradesh, Himachal Pradesh, Nagaland, Sikkim, and Tripura, also recorded the largest proportional increases.
